Expansion of Employer Responsibility
Scope of Collective Bargaining Responsibility
Gradual Introduction of the 4.5-Day Workweek
Inevitable Overhaul of Labor Management Systems
With the new administration signaling a comprehensive overhaul of labor and industrial safety policies, significant changes across corporate management are expected to be inevitable. Major law firms have assessed that it is highly likely that amendments to the Trade Union and Labor Relations Adjustment Act (commonly referred to as the Trade Union Act or the so-called 'Yellow Envelope Act'), the explicit prohibition of the comprehensive wage system, and the introduction of a 4.5-day workweek will become reality. However, they also analyzed that, since these changes are premised on social consensus and legislative procedures, the timing and details of their implementation may remain fluid.
Expansion of Employer Responsibility
The new administration is pursuing the strengthening of rights and interests for "all working people," focusing on substance rather than the name or form of the contract. The enactment of the "Basic Act for Guaranteeing Workplace Rights" is a representative example. This bill is centered on providing protection for service providers such as the self-employed, specially employed workers, and platform workers who are not included in the traditional concept of employees. If this basic law is enacted, those who were previously not recognized as employees will also be guaranteed rights such as employment insurance, industrial accident insurance, health insurance, national pension, support for vocational competency development, restrictions on unfair contract termination, and the prohibition of workplace bullying and sexual harassment. If mandatory employment and industrial accident insurance becomes a reality, the burden is likely to be transferred to employers, including platform companies, so these companies are required to prepare in advance. Law firm Sejong advised that companies should either convert service providers into employees, adjust the number of service providers, or take precautions and manage in advance to ensure that service providers are not mistaken for employees.
Scope of Collective Bargaining Responsibility
The so-called 'Yellow Envelope Act,' which is expected to have a significant impact on labor-management relations, is seen as highly likely to materialize, requiring comprehensive responses. This bill expands the concept of the employer, obliging principal contractors to negotiate with subcontracted workers and limiting liability for damages arising from industrial action. As seen in Article 2 of the amendment, if the definition of employer is expanded from "those who have a direct employment contract" to "those who can substantially and specifically control and determine working conditions," subcontractor unions are more likely to demand collective bargaining with principal contractors, who must then determine whether to respond based on the status of these workers. In this situation, companies may become subject to criminal penalties for refusing collective bargaining, and whether they possess "substantial control" may become a matter for the courts to decide. Ultimately, legal uncertainty may persist for an extended period. In practice, the key issue emerging is the determination of the bargaining unit. Lee Ukrae (58, Judicial Research and Training Institute Class 22), an attorney at law firm Bae, Kim & Lee, stated, "Companies should establish the most efficient bargaining unit that minimizes restrictions under the Trade Union Act, lay the groundwork for it, and respond to bargaining demands. In the event of a dispute, it is important to obtain a ruling that the unit determination was lawful, so companies must respond with consistent logic."
Gradual Introduction of the 4.5-Day Workweek
Major law firms have analyzed that the "4.5-day workweek" is likely to be introduced in a gradual and incremental manner. Law firm Barun analyzed that, due to concerns about decreased productivity resulting from fewer working days, a compromise linked to the introduction of flexible work arrangements could be a realistic solution. Law firm Yulchon gave weight to the possibility of phased pilot operations, citing President Lee Jaemyung's (61, Class 18) statement that there would be "no abrupt implementation." Law firms advised companies to develop strategies to maintain productivity, such as increasing the rate of annual leave usage and introducing artificial intelligence (AI).
Inevitable Overhaul of Labor Management Systems
The prohibition of the "comprehensive wage system" is also expected to be legislated. The "fixed overtime system" is likewise subject to potential regulation. Law firms Gwangjang, Bae, Kim & Lee, and Yulchon all agreed that, although it is unlikely that the Supreme Court's exceptionally recognized comprehensive wage and fixed overtime systems will be regulated, the possibility of strengthened government labor inspections is high. If blanket regulations are implemented, it will be necessary to pay individual overtime allowances based on the actual measurement of extended working hours, requiring the establishment of clear systems for measuring and managing working hours. Jin Changsoo (58, Class 21), an attorney at law firm Gwangjang, stated, "If overtime allowances are paid based on actual working hours, it could actually be disadvantageous for employees. If the existing wage system is favorable to employees, companies should prepare their time management systems even more thoroughly." As corporate interest in the new administration's labor policies continues to grow, law firm HwaWoo will hold a seminar on June 19, inviting former Vice Minister of Employment and Labor Lim Seojeong to discuss the "New Administration's Labor Policy Direction."
Seo Hayeon, Legal Times Reporter
※This article is based on content supplied by Law Times.
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